The grain markets traded substantially higher today ahead of the acreage and stocks reports next week. July corn tested a high of 3.90 today then set back. The last time nearby corn traded above that level was April 8th. The US Dollar index is up .30 to 95.49 and the DJIA was up 47 points to 17,937. July corn futures gained 8.5 cents to $3.85/bushel at the close Friday morning, while December was up 9.75 cents to $4.02.
The soy complex jumped higher Friday presumably on acreage doubts. The funds, no doubt, also engaged heavily in profit taking and rebalancing their positions ahead of what could be considered a market moving event next Tuesday. Covering of short positions as well as consolidating the longs, contributed to a strong rise of nearly 25 cents at mid-day, then retreated. July soybeans gained 1.75 cents to $10.02/bushel at the close Friday, while July soyoil edge lower .14 cents to 33.22 cents/pound, and July meal climbed $4.6 to $341.3/ton.
Wheat futures tested the CME daily price limits today gaining over 34 cents. Heavy fund buying likely took place today as consensus shaped over the impact to the crop due to the uncanny cumulative rainfall totals. Talk of disease and impacted acres likely catalyzed the markets. July CBOT wheat futures gained 30.25 cents to $5.62.25/bushel at the close Friday, while July KC wheat advanced 20.75 cents to $5.56/bushel, and July MWE climbed 21.25 cents to $5.9075.
Yesterday, the livestock complex plunged in what appeared to be a technical shift likely spurred by the seasonal demand shift lower. Wholesale beef cutouts still have managed to maintain strength, presumably a result of capturing late margins from last minute retail buying ahead of the 4th of July. Resistance may continue Friday until such time as buying demand for Labor Day trends higher out of the post 4th trough. August cattle futures plunged 1.75 cents to 148.57 cents/pound at the close Thursday, while December futures dropped 1.70 cents to 152.37. Meanwhile, August feeder cattle futures dropped 4.50 cents to 219.05 cents/pound, and November feeders lost 4.40 cents to 213.80.
Thursday, CME hog futures fell, in what appeared to be a larger breakdown in the proteins. Friday, futures could trend lower as traders remain cautious ahead of the upcoming report and, to a larger degree, may be preparing for the post-4th slowdown in demand. The USDA releases the quarterly hogs and pigs report at 2pm. The average estimates reported for the report are: 107.8 percent for all hogs and pigs, 102% for kept for breeding, and 108.6% for kept for market. August hog futures slipped .12 cents to 72.22 cents/pound, while December dropped .27 cents to 60.60.